Key Guidelines for Managing Community Association Warranties

When the responsibility of a community transitions from the developer to a homeowners association, an array of paperwork comes along. Among this pile, there are usually numerous warranties. Over time, additional warranties may be accumulated for various products and services purchased by the association. However, it’s important to ask: How well do you know these warranties?

Often, board members pay little attention to warranties until something breaks down. However, being unfamiliar with what these warranties cover—and more critically, understanding the requirements necessary to maintain them—can be disadvantageous for the association. Many times, board members are unaware that warranties come with certain obligations that must be fulfilled. Failing to recognize these responsibilities can lead to the warranties being invalidated.

Warranties can vary widely, from covering the quality of a contractor's work to ensuring that major equipment functions correctly or that components are free from defects. Regardless of the coverage, your association should take proactive steps to maintain their validity. Here are five essential actions to consider:

Hire the right professionals to inspect any new equipment, components or construction

It's essential not to cut corners by asking unqualified individuals, like property managers, to conduct inspections, merely to save money. Typically, property managers are not licensed engineers. However, a reputable property management company with a solid local network can guide you to highly qualified engineers or other necessary experts.

Keep all your warranties on file

It's fundamental to retain warranties along with receipts for each service, piece of equipment, and structure purchased. Instead of piling them up somewhere, they should be organized and easily accessible for quick reference.

Assign someone to be responsible for warranties

It’s important to designate a person to read each warranty thoroughly. While this might sound straightforward, many neglect this crucial task. Assign this responsibility to one or more board members, a property manager, a committee member, or another volunteer. Certain warranties, such as those related to roofing, may require registration within a specific timeframe to remain valid. The individual reviewing warranties should also handle any registration requirements.

Have your association attorney explain the legal aspects that you don’t understand

Modern warranties can be quite complex, often resembling legal documents. Therefore, it's wise to seek the assistance of an attorney to clarify any confusing aspects. Before involving your attorney, identify and understand the simpler sections so only the sections necessitating legal expertise are presented for their review. This approach helps save time and resources.

Ask the person who provided the warranty to explain it in depth to your leadership

Inviting contractors, installers, or manufacturers to present detailed insights about the warranty to the board and property manager can be incredibly beneficial. This ensures clear understanding about which issues are covered by the manufacturer’s warranty and which fall under the contractor’s responsibility. It also provides a platform for everyone involved to ask questions, get direct answers, and discuss strategies to meet the association’s obligations effectively.

Tie your preventive maintenance programs to your warranties

A preventive maintenance schedule for your equipment and structures should already be in place. With each new purchase, examine the warranty's requirements and adjust your maintenance schedule accordingly. For instance, a roof warranty might be void if the roof drains are not regularly cleared of debris. Maintain a log detailing the services performed and obtain the signature and contact information of the service provider. This documentation may prove invaluable when invoking a warranty.

Warranties offer significant protection and peace of mind for your association, but only if the board understands how to keep them valid. Engaging with knowledgeable experts can further reinforce this assurance.